Investment firm Morgans has recently upgraded its ratings for three notable stocks within the ASX 200, reflecting a more optimistic outlook for these companies. The upgrades include Imdex Ltd, Pro Medicus Ltd, and Transurban Group, with each receiving specific price targets that indicate potential growth.
Imdex Ltd Sees Strong Growth Potential
Morgans has raised its rating for Imdex Ltd (ASX: IMD) to “accumulate,” setting a price target of A$3.80. The brokerage believes that the mining technology company is poised for robust growth in the financial year 2026. According to Morgans, the consensus revenue growth estimate of 10% is overly conservative. The firm notes that capital markets activity for junior miners, which is a key lead indicator for exploration spending, has surged significantly.
Morgans emphasizes a correlation between Imdex’s sensor volumes and the anticipated growth in geochemistry volumes, projecting a revenue increase of around 16% for FY 2026, accounting for competitive pressures. The firm’s updated forecasts suggest a 3% increase in net profit after tax (NPAT) for FY 2026 and a 7-9% rise in the following two years. The target price upgrade to A$3.80 reflects a price-to-earnings ratio of 30x based on adjusted earnings per share for FY 2026.
Pro Medicus Ltd’s Valuation Justified Despite High Multiples
The health imaging technology company Pro Medicus Ltd (ASX: PME) has also received an upgrade, with Morgans now recommending a “hold” rating based on valuation considerations. Analysts acknowledge that while the company’s shares trade at elevated multiples—approximately 200x for FY 2026 price-to-earnings and 130x for enterprise value to EBITDA—this valuation is justified by its quality and growth prospects.
Morgans notes that the risk-reward profile is more balanced at current levels, advising investors to consider buying on weakness or trimming positions on strength. Following a model roll-forward, the valuation saw a slight increase to A$290 from A$285. This adjustment does not alter the firm’s forecasts or model assumptions, marking the upgrade purely as a reflection of valuation.
Transurban Group’s Traffic Data Drives Upgrade
Morgans has also raised its recommendation for Transurban Group (ASX: TCL) to “hold,” with a new price target set at A$13.39. This decision comes after a review of the company’s latest traffic data and a recent US dollar bond issuance. The target price reflects a modest increase of 51 cents, attributed to a 3% forecast upgrade in free cash flow, primarily driven by improved EBITDA expectations, particularly in Brisbane and North America.
The firm’s analysis indicates that the adjustments to capital management and debt service assumptions support this revised outlook. Morgans suggests that the potential total shareholder return at current prices is minimal, justifying the cautious upgrade from “trim” to “hold.”
As the market continues to evolve, all three upgrades demonstrate a strategic response from Morgans to the changing landscape of the ASX 200. Investors will be watching closely as these companies navigate their respective growth trajectories in the coming financial year.
